USAID awards $38.7M contract for technical services to TETRA TECH ES, INC

Contract Overview

Contract Amount: $38,772,134 ($38.8M)

Contractor: Tetra Tech ES, Inc.

Awarding Agency: Agency for International Development

Start Date: 2021-01-04

End Date: 2026-01-03

Contract Duration: 1,825 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SINAR

Plain-Language Summary

Agency for International Development obligated $38.8 million to TETRA TECH ES, INC. for work described as: SINAR Key points: 1. Contract value of $38.7 million over 5 years. 2. Competition method is Full and Open, indicating broad market access. 3. Risk is moderate due to Cost Plus Fixed Fee pricing structure. 4. Sector is Professional, Scientific, and Technical Services.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable and the fixed fee aligns with performance. Benchmarking against similar contracts for 'All Other Professional, Scientific, and Technical Services' is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, potentially leading to competitive pricing.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes market efficiency and can lead to better value.

Public Impact

Supports international development efforts through specialized technical services. Potential for job creation within the professional services sector. Ensures continued agency operations in critical areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, which is broad and encompasses a wide range of specialized expertise. Spending in this sector is significant across government agencies for consulting, research, and technical support.

Small Business Impact

The data indicates that small business participation was not a specific set-aside or requirement for this contract. Further analysis would be needed to determine if small businesses were indirectly involved as subcontractors.

Oversight & Accountability

Oversight will be crucial to manage the Cost Plus Fixed Fee structure, ensuring that costs are justified and the fixed fee is appropriate for the services rendered. The Agency for International Development's contracting office is responsible for this oversight.

Related Government Programs

Risk Flags

Tags

all-other-professional-scientific-and-te, agency-for-international-development, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $38.8 million to TETRA TECH ES, INC.. SINAR

Who is the contractor on this award?

The obligated recipient is TETRA TECH ES, INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $38.8 million.

What is the period of performance?

Start: 2021-01-04. End: 2026-01-03.

What is the typical profit margin for Cost Plus Fixed Fee contracts in this sector?

Profit margins for Cost Plus Fixed Fee (CPFF) contracts in the professional, scientific, and technical services sector can vary widely based on contract complexity, risk, and agency policies. Generally, the fixed fee is negotiated as a percentage of the estimated direct costs. While specific benchmarks are proprietary, agencies aim for fees that are fair and reasonable, typically ranging from 5% to 15% of the estimated cost, but this can be influenced by market conditions and competition.

How does the 'All Other Professional, Scientific, and Technical Services' NAICS code compare to more specific categories in terms of cost efficiency?

The broad 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) can make direct cost efficiency comparisons challenging. More specific codes often allow for better benchmarking against specialized services. However, the full and open competition used here suggests that the market determined a competitive price for this broad category, implying reasonable efficiency given the scope.

What are the key performance indicators (KPIs) that USAID will use to measure TETRA TECH ES, INC.'s effectiveness?

While not detailed in the provided data, USAID typically establishes Key Performance Indicators (KPIs) for contracts like this, focusing on service delivery quality, timeliness, adherence to technical specifications, and achievement of project objectives. These KPIs are crucial for managing the CPFF contract and ensuring value for money. Performance reviews and regular reporting would track progress against these metrics.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 72049720R000004

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 1320 N COURTHOUSE RD STE 600, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,772,134

Exercised Options: $38,772,134

Current Obligation: $38,772,134

Actual Outlays: $30,023,466

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $12,586,060

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 7200AA19D00029

IDV Type: IDC

Timeline

Start Date: 2021-01-04

Current End Date: 2026-01-03

Potential End Date: 2026-01-03 00:00:00

Last Modified: 2025-06-13

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